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11/2022

RADNET takes majority stake in HEART & LUNG IMAGING

UNITED KINGDOM Health Providers / Outpatient Care / Radiology EV 20M - 50M USD

Context

RadNet, a US-based medical imaging specialist, has acquired a 75% majority stake in Heart & Lung Imaging Limited (HLH), a UK-based teleradiology network focused on detecting and diagnosing lung and cardiovascular diseases. This move is part of RadNet's strategy to enhance its capabilities in early cancer detection and develop solutions that combine artificial intelligence (AI) with specialized medical expertise. Through this acquisition, RadNet expands its presence in the UK and positions itself in a market with significant growth prospects, driven in part by the National Health Service's (NHS) Targeted Lung Health Check (TLHC) program. This lung cancer screening program, targeting high-risk populations aged 55-74 with a history of smoking, is expected to generate over one million lung scans per year in England. By integrating HLH, RadNet can leverage its new partner's image reading and interpretation capabilities, combined with the AI technologies developed by its Dutch subsidiary Aidence, which specializes in automated lung nodule detection. The acquisition also aims to accelerate the deployment of large-scale population screening programs, a strategic segment for RadNet. By combining AI tools with the expertise of specialized radiologists, the company seeks to improve diagnostic accuracy, reduce unnecessary patient recalls, and optimize healthcare costs. Beyond the UK, this platform could serve as a model for developing similar programs in the US and other international markets.

HEART & LUNG IMAGING, which reported an EBITDA margin of in 2022, is valued in this transaction at an EV/EBITDA multiple of , a level to compare with the average currently observed in the Healthcare & Pharma sector (15.3x).

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Target

Heart & Lung Imaging Limited is a UK-based teleradiology network dedicated to enhancing clinical outcomes for pulmonary and cardiovascular diseases through early diagnosis and specialized medical expertise. Headquartered in London, the company leverages a national network of over 70 expert cardiothoracic radiologists who provide imaging interpretation services to the National Health Service (NHS), as well as numerous hospitals, academic centers, and medical institutions across the UK. The company has established itself as the primary independent provider of radiology reading services for the NHS England Targeted Lung Health Check (TLHC) program, one of Europe's largest lung cancer screening initiatives. Its core activity involves analyzing low-dose thoracic computed tomography (CT) scans to identify lung cancers and other respiratory pathologies at an early stage. This expertise is particularly crucial given that lung cancer remains a leading cause of mortality in the UK, with approximately 48,000 new cases diagnosed annually.

Ent. Value

Equity Value

Multiples

EV / Revenue

EV / EBITDA

EV / EBIT

Historical Financials (USD)

Year
Rev
EBITDA
EBIT
2022
2021

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REFERENCES

Valuation range: EV 20M - 50M USD

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of HEART & LUNG IMAGING by RADNET are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Target: heart & lung imaging